What is guaranteed life insurance?

What is guaranteed life insurance?

When it comes to life insurance, the term 'guaranteed' can mean a few different things. Usually these relate to your acceptance onto the policy, how your premiums are priced or whether your cover is guaranteed to pay out.

When it comes to life insurance, the term 'guaranteed' can mean a few different things. Usually these relate to your acceptance onto the policy, how your premiums are priced or whether your cover is guaranteed to pay out.

Policies that offer guaranteed acceptance

Some insurers can guarantee that you'll be accepted onto a policy, regardless of your health or medical history. Usually these are referred to as over 50s policies.

Unlike regular term life insurance, with over 50s life insurance you won't need to answer any medical questions and it won't matter if you've had a history of treatment for your health. As long as you're over 50 years old, your acceptance can be guaranteed.

These policies however do usually come with some limitations. The amount of cover you can take out is often limited to a maximum of around £25,000 and usually

they won't pay out at all if you die within the first two years of taking out the policy, unless the cause is accidental death.

If you're unable to get regular life insurance, an over 50s policy that's guaranteed to accept you could be a sensible alternative.

If you're under 50, there aren't currently any policies or insurers offering guaranteed acceptance.

Policies that offer guaranteed premiums

Some life insurance policies can guarantee that the price you pay each month for your cover will never increase.

Unless premiums are guaranteed, sometimes your cover may be reviewed at specific times within the term of your policy. Other policies link your cover to inflation or retail price index (RPI) so that there's less chance of your cover being worth less over time. This in turn can affect the price you pay.

When buying your cover, it's wise to check if the premiums you pay are guaranteed to stay the same or if they're liable to increase in the future.